Master Settlement Agreement
PACT Recommendation: Allocate funding for comprehensive tobacco control at the levels recommended by the CDC to meet the needs of Pennsylvanians ($140 million annually).
Funding for Cessation and Prevention Programs: Masters Settlement Agreement (MSA) with the Tobacco Industry
In 1998, Pennsylvania and 45 other states entered into a Master Settlement Agreement with the tobacco industry. The Master Settlement Agreement was estimated at a minimum of $206 billion dollars nationwide; Pennsylvania was allotted an estimated $11 billion dollars to be disbursed in the first 25 years of the agreement.[i] Between July 2016 and June 2017, Pennsylvania will receive approximately $354 million in MSA funding.
Tobacco Cessation Funding
Tobacco cessation and prevention funding for FY 17 comprised 13.7 million from MSA and $3.07 million in federal funding, for a total of $16.77 million. This represents only 13.5 percent of the CDC-recommended spending level of $140 million.
|2001||In 2001, PA passed legislation (ACT 77), allocating 12% of the MSA budget to tobacco cessation and prevention. In the intervening years, that budget has taken several hits as described in these tabs. Tobacco prevention and cessation is now down to less than 5% of the MSA budget.|
|2005||3% of Tobacco Prevention and Cessation funds used to patch up holes in the state budget.|
|2010||Tobacco cessation and prevention fund decreased by 45%, forcing the elimination of the majority of tobacco cessation and prevention programs that target youth and the community.|
|2013||An MSA-Related arbitration panel ruled against PA in a non-participating manufacturer adjustment dispute, reducing the 2014 payment by $169.9 million.|
|2015||The tobacco cessation and prevention fund remains decreased by a 45% funding cut. The PA Department of Health estimates that $14.2 million will be allocated for tobacco control and prevention programming. This is only 10% of the CDC’s recommended spending level of $140 million.|
|2017||The Pennsylvania legislature floated a bond using MSA funds to balance the state budget. MSA funds no longer support tobacco cessation and prevention programs in Pennsylvania; without a dedicated funding street, future program funding may be vulnerable to budget cuts.|